The country’s hospitality sector is gaining momentum. In 2024, the Department of Tourism reported that the Philippines welcomed approximately 5.95 million international visitors, generating a record-breaking P760 billion in tourism revenue. This marked a 119 percent recovery from 2019. The sector also supported 16.4 million Filipinos, accounting for 34 percent of total employment in the first quarter of 2025 alone. Colliers also anticipates growth in upscale and luxury hotels in urban areas in 2025, alongside increased development of hotels and MICE (Meetings, Incentives, Conferences and Exhibitions) facilities in key tourist destinations. “We have observed a rising number of private investors constructing and developing properties for tourism, which underscores strong confidence in the nation’s hospitality sector. These strategic investments not only deliver significant returns but also enhance the Philippines’ global tourism competitiveness, drive economic progress and foster community development,” Lynette Ermac, senior vice president and head of Sales and Operations at Discovery Hospitality, said.Colliers added that foreign hotel brands are expanding aggressively, partnering with local developers in key and emerging markets. Some of these include Dusit, Wyndham, Accor, Marriott and The Ascott Group. The land lease extension and REIT integration are expected to further stimulate investment, especially in tourism-driven townships and convention facilities.“We are seeing a relentless expansion of foreign hospitality brands in the Philippines. The travel and tourism sector has tremendous potential, given the projected rise in arrivals and modernization of airports and other big-ticket public infrastructure projects across the country. Adopting a bullish forecast, we expect average daily rates and occupancies to improve for the remainder of 2025,” Richard Raymundo, managing director of Colliers Philippines, said.